Creative Edge Nutrition Inc (OTCMKTS:FITX) declined more than 12% to close at $0.0114 on Thursday’s trading session, in spite of the fact that there were no development or news related to the company announced in this week. The turn of events is not that surprising as it is not backed by strong fundamentals. The only encouraging aspect related to the stock was support from popular analyst Paul Knag.
If the article by Knag is analyzed, it talks about Creative Edge’s press release almost verbatim. It highlights the relatively old news of subsidiary spin-off. It also highlights some of the dilution statistics and then concludes the article with how the company has managed to get the attention of small cap investors. It states that Creative Edge is one stock to keep on the radar.
In the entire article, the most recent developments and news related to the company are ignored. The much-hyped news of the company not getting a marijuana cultivation license by Health Canada is ignored. It was a big disappointment for the company, still didn’t have any place in the article. The fact that twenty days have already gone since the news hit the market may also be of at least some significance that investors might want to consider.
To recap, the stocks of Creative Edge declined yesterday after a strong price surge in the previous session. The investors’ optimism fades away the very next day the article was published. Knag, the popular analyst, presented the article in a positive light, ignoring all the disturbing red flags and setbacks of the company. It would be enough to state that the rollercoaster move in FITX stock resembles the movement of a marijuana PR ascent and descent, the likes of which the regulatory body SEC keeps warning investors about. The writer has ignored red flags, but investors should not follow the same path.